A subsidy:
A. All of these statements are true.
B. is a requirement that the government pay an extra amount to producers or consumers of a good.
C. is used by governments as an alternative to price controls to benefit certain groups without generating a shortage or a surplus.
D. is used by governments to encourage the production and consumption of a particular good or service.
Answer: A
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Due to a recession in the US, the average rate of return on investments is likely to fall causing the US dollar to
a. Appreciate b. Depreciate c. Not change in value d. None of the above
When a nation begins to export a good,
a. the domestic price of that good falls b. less of that good is produced domestically c. the domestic producers are made better off d. the domestic consumers are made better off e. both domestic and foreign consumers will purchase more of it
Tom and Eric went to trade school at the same time. Each graduated with an associate's degree. They have received similar performance evaluations. Eric's employer is not a good business manager, and the sales manager lost a major deal. Because of the decrease in profits, the employees did not receive raises last year. Tom's employer is a savvy business manager and the sales manager is experienced
and works hard. If Tom has higher earnings than Eric, the difference is most likely a function of a. chance. b. differences in human capital. c. differences in signaling. d. discrimination.
The tragedy of the commons arises from the:
A. combination of rivalry and nonexcludability. B. good being excludable. C. combination of rivalry and excludability. D. good being rival.